The Union Cabinet has sanctioned a pioneering scheme that guarantees small shopkeepers, retail traders, and self-employed individuals a minimum monthly pension of ₹3000 upon reaching the age of 60 years. This initiative forms part of the government’s dedication to providing universal social security. The scheme pertains to all small entrepreneurs as well as retail traders with a GST turnover under Rs. 1.5 crore, between the ages of 18-40 years. No supporting documents other than Aadhaar and bank account details are required for enrolment, which is based on self-declaration.
Key Highlights of the New Pension Scheme
This innovative scheme is poised to positively impact over three crore small shopkeepers and traders across India. Registration can be done through any of the 3.25 lakh Common Service Centres dispersed throughout the nation. An interesting aspect of this scheme is that the Government of India will contribute an amount equal to the participant’s contribution in their account.
Let’s take an example to illustrate this. If a 29-year-old individual contributes Rs. 100 per month, the Central Government will match this amount, thereby ensuring a regular inflow of double the initial contribution into the subscriber’s pension account every month.
Who are Eligible to Participate?
The scheme opens its doors to all small shopkeepers and self-employed persons in addition to retail traders having a GST turnover below Rs. 1.5 crore. The targeted range for enrolment is individuals of 18-40 years of age.
Registration Process Simplified
Subscribing to this welfare scheme is simple and straightforward. Interested persons can register themselves via more than 3,25,000 Common Service Centres found across the country. The process necessitates no elaborate documentation, with only Aadhaar and associated bank account details serving as prerequisites.
| Fact | Detail |
|---|---|
| Minimum Monthly Pension | ₹3000 |
| Age Criteria for Participation | 18-40 years |
| No. of Beneficiaries | Over 3 crore small shopkeepers and traders |
| Registration Centres | Over 3.25 lakh Common Service Centres |
| Registration Pre-requisites | Aadhaar and bank account details |
Pension Contribution: A Two-Way Street
Emphasising the government’s commitment to social security, this initiative introduces a matching contribution mechanism. This means that the Central Government will supplement the user’s contribution with an equal amount, thereby doubling the funds in the subscriber’s pension account every month. For instance, a 29-year-old who has decided to contribute Rs. 100 a month will have his/her pension account credited with Rs. 200 each month – the individual’s contribution plus the government’s matched funding.